5
#000000
#FFFFFF
Economy
Despite Costs Soaring Under His Watch, Trump Tries to Jack Mamdani's 'Affordability' Message
Voters aren't buying it. The president's approval rating on prices and inflation, which was at +5 points in January, has fallen to a stunning -33, according to the latest data from The Economist.
Nov 06, 2025
In the wake of a top-to-bottom shellacking of Republicans across the country in Tuesday's elections, President Donald Trump is making a concerted effort to co-opt the "affordability"-focused messaging that catapulted the once-obscure democratic socialist Zohran Mamdani to become New York City's next mayor.
MSNBC columnist Steve Benen notes that before Election Day, Trump had never once uttered the word "affordability" in his more than a decade using Twitter/X. But since Tuesday, it's been all he can talk about.
After Democrats romped in virtually every important race from Virginia to California to New Jersey, the president explained that it was because "they have this new word called affordability" and Republicans "don't talk about it enough."
He followed it by claiming that “2025 Thanksgiving dinner under Trump is 25% lower than 2024 Thanksgiving dinner under [former President Joe] Biden, according to Walmart. My cost are lower than the Democrats on everything, especially oil and gas! So the Democrats ‘affordability’ issue is DEAD! STOP LYING!!!”
He later claimed, completely falsely, that America was nearing "almost $2 for gasoline," and that Republicans "are the ones who've done a great job on affordability... they said we lost an election on affordability. It’s a con job."
Focusing aggressively on the cost of living and blaming his opponents for it being out of control has worked for Trump in the past. Polls from his 2024 reelection showed that inflation and the cost of living were the leading issues under Biden that drove voters away from Democrats and into Trump's camp.
But Mamdani will enter office with the status of an outsider and a slew of untested policy proposals meant to concretely address New York's untenable cost of living, like a freeze on rent hikes, free public transit, and the opening of public grocery stores.
Trump, on the other hand, is nearly a year into his second presidential term, during which he has often downplayed voters' concerns about rising costs, even telling them they'd need to endure "some pain" in order to reap the benefits of his agenda.
Under his watch, and often directly due to his own policy decisions, the crisis of affordability that drove him to the White House has only accelerated, with 2.9% yearly inflation in August, the last month for which there is data due to the government shutdown.
His claims about both grocery and energy prices are both untrue. Energy prices have actually increased by 10% since Trump took office, and the average regular gas price was not nearing $2 per gallon, as Trump claimed, but more than $3 as of Monday.
While high energy costs can be attributed to external factors like increased power demand from artificial intelligence data centers and energy bottlenecks resulting from the war in Ukraine, the New York Times editorial board noted last month that "Trump energy policies are not helping—and will soon make matters worse."
The foremost culprit is his slashing of hundreds of billions of dollars worth of tax credits and investments into renewable energy sources like wind and solar, as well as electric vehicles. As the board explained:
Energy prices are likely to rise the most in states that have not prioritized clean energy, including Kentucky, Missouri, and Oklahoma, experts say. The repeal of the tax credits alone may push electricity prices almost 10% higher than they would be otherwise by 2029, according to National Economic Research Associates, a consulting firm. Gas prices will also increase over the next decade, according to Rhodium Group, a think tank, as consumers who would otherwise have driven electric cars continue using vehicles that burn fossil fuels.
Grocery prices have also spiked by 2.7% since last year, increasing each month except one since he took office. Some of the products that have seen the most dramatic increases are those impacted by Trump's aggressive tariff regime, both because they are frequently imported like coffee or bananas, or commonly exported like beef, and subject to the retaliatory tariffs of countries against which Trump has waged his trade war.
His "mass deportation" agenda, meanwhile, has gutted the nation's agricultural labor force, which is 80% foreign-born, causing supply shortages and, as a result, higher prices for domestic goods.
On the other major plank of Mamdani's affordability agenda, the uncontrolled cost of housing has also been supercharged by Trump's policies. His tariffs have caused the cost of building materials to spike, slowing the rate of housing construction.
And as a record high 22 million renters are considered cost-burdened, meaning they spend over 30% of their income on housing, Trump's 2026 fiscal year budget proposed to slash rental assistance by nearly 43%. In September, ProPublica also obtained two plans from the Department of Housing and Urban Development (HUD) expected to place burdensome new work requirements and time limits on those living in public housing, which could jeopardize assistance for 4 million people.
While Trump has made a sharp pivot toward "affordability" rhetoric, his actions amid the ongoing government shutdown, which has become the longest in US history, have belied that commitment.
Though Trump acknowledged that Tuesday's Election Night drubbing suggested Republicans were "losing" the shutdown, Republicans have insisted they won't come to the table to negotiate to extend the Affordable Care Act tax credits that caused the impasse in the first place.
As a result, Americans are already beginning to see their health insurance premiums skyrocket as the enrollment period for next year begins. And if the GOP refuses to extend the credits, over 22 million Americans are expected to see their premiums more than double on average in 2026, according to KFF.
And contrary to fighting the rising prices of food, the Trump administration has used the shutdown to choke off food assistance to 42 million Americans eligible for the Supplemental Nutritional Assistance Program (SNAP) in defiance of orders from two federal judges.
Under a proposed plan to only partially fund the program, the average SNAP recipient would have their benefits cut by 61%, while millions will lose their benefits for November entirely, according to an analysis by the Center on Budget and Policy Priorities.
According to The Economist, Trump's approval rating has tanked to just 39%, while disapproval is at 58%. It's an all-time low over both his terms as president. By far the sharpest decrease in his approval rating has come on prices and inflation. Where he enjoyed a net +5 rating on the issue at the start of his term, it had utterly collapsed to -33 as of November 2.
"Trump could theoretically fix his political problems if he readjusts his policy framework and focuses on affordability, corporate power, and working with Democrats instead of the establishment GOP," said economic journalist Matt Stoller in a post on social media. "But there's zero chance he does that. He can't. He's George W. Trump."
Keep Reading
Show Less
Warning Against Taxpayer Bailout for Big Tech, Critics Fume Over OpenAI Execs' Talk of Government Loans
"Big Tech is building a mountain of speculative infrastructure," warned one critic. "Now it wants the US government to prop up the bubble before it bursts."
Nov 06, 2025
Tech giant OpenAI generated significant backlash this week after one of its top executives floated potential loan guarantees from the US government to help fund its massive infrastructure buildout.
In a Wednesday interview with The Wall Street Journal, OpenAI chief financial officer Sarah Friar suggested that the federal government could get involved in infrastructure development for artificial intelligence by offering a "guarantee," which she said could "drop the cost of the financing" and increase the amount of debt her firm could take on.
When asked if she was specifically talking about a "federal backstop for chip investment," she replied, "Exactly."
Hours after the interview, Friar walked back her remarks and insisted that "OpenAI is not seeking a government backstop for our infrastructure commitments," while adding that she was "making the point that American strength in technology will come from building real industrial capacity, which requires the private sector and government playing their part."
Despite Friar's walk-back, OpenAI CEO Sam Altman said during a podcast interview with economist Tyler Cowen that released on Thursday that he believed the government ultimately could be a backstop to the artificial intelligence industry.
"When something gets sufficiently huge... the federal government is kind of the insurer of last resort, as we've seen in various financial crises," he said. "Given the magnitude of what I expect AI's economic impact to look like, I do think the government ends up as the insurer of last resort."
Friar and Altman's remarks about government backstops for OpenAI loans drew the immediate ire of Robert Weissman, co-president of consumer advocacy organization Public Citizen, who expressed concerns that the tech industry may have already opened up talks about loan guarantees with President Donald Trump's administration.
"Given the Trump regime’s eagerness to shower taxpayer subsidies and benefits on favored corporations, it is entirely possible that OpenAI and the White House are concocting a scheme to siphon taxpayer money into OpenAI’s coffers, perhaps with some tribute paid to Trump and his family." Weissman said. "Perhaps not so coincidentally, OpenAI President Greg Brockman was among the attendees at a dinner for donors to Trump’s White House ballroom, though neither he nor OpenAI have been reported to be actual donors."
JB Branch, Public Citizen’s Big Tech accountability advocate, said even suggesting government backstops for OpenAI showed that the company and its executives were "completely out of touch with reality," and he argued it was no coincidence that Friar floated the possibility of federal loan guarantees at a time when many analysts have been questioning whether the AI industry is an unsustainable financial bubble.
"The truth is simple: the AI bubble is swelling, and OpenAI knows it," he said. "Big Tech is building a mountain of speculative infrastructure without real-world demands or proven productivity-enhancing use cases to justify it. Now it wants the US government to prop up the bubble before it bursts. This is an escape plan for an industry that has overpromised and underdelivered."
An MIT Media Lab report found in September that while AI use has doubled in workplaces since 2023, 95% of organizations that have invested in the technology have seen "no measurable return on their investment."
Concerns about an AI bubble intensified earlier this week when investor Michael Burry, who famously made a fortune by short-selling the US housing market ahead of the 2008 financial crisis, revealed that his firm was making bets against Nvidia and Palantir, two of the biggest players in the AI industry.
This has led to some AI industry players to complain that markets and governments are undervaluing their products.
During her Wednesday WSJ interview, for instance, Friar complained that "I don’t think there’s enough exuberance about AI, when I think about the actual practical implications and what it can do for individual."
Nvidia CEO Jensen Huang, meanwhile, told the Financial Times that China was going to beat the US in the race to develop high-powered artificial intelligence because the Chinese government offers more energy subsidies to AI and doesn't put as much regulation on AI development.
Huang also complained that "we need more optimism" about the AI industry in the US.
Investment researcher Ross Hendricks, however, dismissed Huang's warning about China winning the AI battle, and he accused the Nvidia CEO of seeking special government favors.
"This is nothing more than Jensen Huang foaming the runway for a federal AI bailout in coordination with OpenAI's latest plea in the WSJ," he commented in a post on X. "These grifters simply can't be happy making billions from one of the greatest investment manias of all time. They'll do everything possible to loot taxpayers to prevent it from popping."
Keep Reading
Show Less
'Another Trump Lie': Despite Campaign Pledges, Electricity Costs Up $100 Per Family
Sen. Elizabeth Warren said the price increases will cost US families "an estimated $70 billion over the next three years."
Nov 06, 2025
As low-income households in northern states where the weather has already turned colder face the loss of heating assistance due to the government shutdown, a congressional report unveiled Thursday reveals that households across the country can expect to pay about $100 more this year in electricity costs than they did last year.
The report by Democratic members of the Joint Economic Committee—which includes Sens. Martin Heinrich (D-N.M.), Amy Klobuchar (D-Minn.), Gary Peters (D-Mich.), and Maggie Hassan (D-N.H.)—emphasizes that the higher costs come a year after President Donald Trump won a second term in office after campaigning on ensuring families would pay less for groceries and energy if they elected him.
"Your energy bill within 12 months will be cut in half, and that’s my pledge all over the country," said Trump at a roundtable event in September 2024.
Contrary to that claim, the Democrats on the joint committee found that based on monthly electric bill data released by the Energy Information Administration for the first eight months of this year, annual costs for families will be at least 5% higher in 37 states and at least 10% higher in 10 states and Washington, DC.
Sen. Elizabeth Warren (D-Mass.) condemned "another Trump lie that's costing American families," and emphasized that the projected higher bills will force US households to spend "an estimated $70 billion over the next three years."
"That's why I'm pressing the Trump administration to actually stand up and do something to lower the electricity costs," said Warren.
Donald Trump promised to cut electricity costs in HALF by 2026.
But new data shows that electricity costs have actually gone UP by 11% since he took office.
Another Trump lie that's costing American families. pic.twitter.com/B2Ib14n88Y
— Elizabeth Warren (@SenWarren) November 6, 2025
Some of the worst-affected states include those with harsh winters in the northeast, including Maine, where people are projected to pay 12.5%, or $200, more for electricity this year. Massachusetts families will pay 12.4% ($250) more. In the Midwest, Illinois and Indiana will pay 15.2% ($200) and 16.3% ($260) more, respectively, while Washington, DC is the hardest hit by higher costs, with families expected to pay 22.1% ($300) more.
As CBS News reported in August, Trump has sought to blame higher electricity bills on renewable energy, but Rob Gramlich of energy consulting firm Grid Strategies said the higher demand and rising costs are being driven by "the rapid expansion of artificial intelligence, oil and gas drilling, space heating, and electrified forms of transportation."
Trump has demanded an expansion of AI data centers, which can consume 30 times more electricity than traditional data centers and use as much power as 80,000 homes.
“While President Trump claimed he would cut electricity prices in half, in reality, Americans in almost every single state are facing higher electricity bills,” said Hassan, ranking member of the committee. “Democrats and Republicans should be working together to lower costs for families, but instead President Trump is continuing to push prices up even higher.”
The report was released two days after elections across the country that were favorable for Democrats. New Jersey Gov.-elect Mikie Sherrill won after campaigning on a promise to freeze utility rates in the state, while two Democrats in Georgia ousted Republicans on the state's Public Service Commission, which regulates utility prices.
The GOP commissioners had approved six rate increases over the past two years; the election marks the first time any Democrats have won a seat on the panel since 2007.
Keep Reading
Show Less
'Mega-Layoffs' Under Trump as Corporations Have Cut 1 Million Jobs This Year—Most Since 2003
“Trump put billionaires in charge of everything," said progressive Congressman Greg Casar. "It’s a disaster.”
Nov 06, 2025
The US labor market, which in recent months had ground nearly to a halt, now appears to be entering a downward spiral.
As reported by the Washington Post on Thursday, new data from corporate outplacement firm Challenger, Gray & Christmas found that employers in October announced 153,000 job cuts, which marked the highest number of layoffs in that month since October 2003.
Total announced job cuts in 2025 have now reached 1.1 million, a number that the Post describes as a "recession-like" level comparable to the steep job cuts announced in the wake of the dotcom bust of the early 2000s, the global financial crisis of 2008, and the onset of the Covid-19 pandemic in 2020.
John Challenger, the CEO of Challenger, Gray & Christmas, told the Post that the huge number of October layoffs showed the economy was entering "new territory."
"We haven’t seen mega-layoffs of the size that are being discussed now—48,000 from UPS, potentially 30,000 from Amazon—since 2020 and before that, since the recession of 2009," he explained. "When you see companies making cuts of this size, it does signal a real shift in direction."
CNBC noted that the Challenger report found that the tech sector is currently being hardest hit by the layoffs, and it said that the adoption of artificial intelligence was a significant driver of job cuts.
"Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes," the report said. "Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market."
With the backing of Big Tech investors, President Donald Trump has pushed to prevent states from regulating AI, over the objections of labor groups and progressive lawmakers. Last month, Sen. Bernie Sanders (I-Vt.) warned that without strong regulation, tech billionaires' investments in AI will likely "increase their wealth and power exponentially" while wiping out "tens of millions" of jobs.
According to Bloomberg, however, AI adoption is just one factor in companies' decision to enact mass layoffs, as some firms have also cited the need to protect their profit margins from the impacts of President Donald Trump's tariffs, which have raised prices for a wide variety of products and materials.
Democratic lawmakers were quick to seize on the news of mass layoffs as evidence that Trump is sending the US economy into a ditch.
"Trump put billionaires in charge of everything," remarked Rep. Greg Casar (D-Texas) in a social media post. "It’s a disaster."
"Trump inherited the fastest growing economy in the [Organization for Economic Cooperation and Development], fastest reduction in inflation, record job creation," said Rep. Sean Casten (D-Ill.). "Dumb tariffs, racist immigration policies, attacks on the rule of law and termination of congressionally mandated programs did this."
Sen. Chris Murphy (D-Conn.), meanwhile, simply wrote that "Trump’s economy suuuuucks."
Keep Reading
Show Less
Most Popular